Work with a Provo Attorney to Help Resolve Your Partnership Dispute

Utah legal team takes on internal disputes with skill and integrity

Business partnerships can have their ups and downs like any other relationship. Even though partners have the same overall goals for their venture, they might have serious disputes about the best ways to achieve them. In some instances, one owner might suspect another of engaging in misconduct. Jeffs & Jeffs, P.C. provides strong advocacy and advice to Utah clients in all types of partnership disputes. Having worked with business leaders statewide for 70 years, our firm knows how to assert an owner’s rights effectively while minimizing disruption to the underlying business.

What are the most common causes of partnership disputes?

There are multiple types of disagreements that can drive partners apart. Some of the most common relate to the following:

• Authority and control — Partners can differ on key decisions and the partnership agreement might be ambiguous as to who has the final say.
• Financial matters — Whether relating to initial funding, capital investment or funds being transferred from the company, a financial conflict might require detailed investigation and forensic accounting.
• Alleged misconduct — Partners have a fiduciary duty to act in the best interests of the business and of the other partners. Self-dealing, misappropriation of funds or a failure to fulfill one’s responsibilities could result in legal liability.
• Departure terms — If a partner withdraws from the business, there could be a disagreement as to what they should receive in exchange for their share of ownership.

You can rely on us for sound counsel no matter what led to your partnership dispute. 

How can Provo business owners protect their assets during partnership disputes? 

Coaches and CEOs frequently say that winning is everything. That is not entirely true when owners of a company take opposite sides. A legal victory that ends up dissipating the partnership’s assets does not help anyone. Our experienced business law attorneys strive to advance the interests of our clients. We make every effort to resolve the matter as quickly and efficiently as possible, so as to minimize disruption of day-to-day operations. 

Are Utah partnership disputes best resolved through mediation, arbitration or litigation?

In general, partners locked in dispute should avoid business litigation, which could be costly, time-consuming and public. Through mediation, feuding partners might be able to focus on a settlement with the assistance of a neutral third party who can guide a productive dialogue. In conflicts where consensus is harder to achieve, giving an arbitrator decision-making authority might be a better path. Sometimes, however, the parties cannot agree to these alternative dispute resolution methods, and going to trial is the only way to accomplish critical objectives. 

Can I force my business partner out of the company?

Under Utah law, the legal term for removing a business partner is dissociation. The partnership agreement should set forth when other owners can dissociate a partner. If certain conditions are met, a partner can be forced out by a unanimous vote of their fellow partners. In addition, state law allows for ejecting a general partner who has filed bankruptcy. Regardless of the specific motivation, dissociation can become highly complex and possibly emotional. Before you start the process, it is important to gain an informed perspective from a qualified attorney. 

What are the possible outcomes of a partnership dispute?

Sometimes, with skillful legal guidance, partners can overcome their differences and keep their business running with a modified partnership agreement, which can address the source of the conflict. Alternatively, a group of partners might come to the conclusion that one or more members should depart pursuant to terms that are negotiated or decided by a neutral arbitrator. In more hostile circumstances, dissociation of a partner or dissolution of the entire entity might be warranted. 

Contact a knowledgeable Utah partnership dispute lawyer

Jeffs & Jeffs, P.C. assists Utah business owners in resolving partnership conflicts and other internal disputes. Please call 801-373-8848 or contact us online to make an appointment regarding your particular issue. We are located two blocks from the Provo courthouse and one block from the Latter-Day Saints Historic Provo Temple.